Axis Bank Raises Rs 12,500 Crore Via QIP

Axis Bank Ltd. on Friday raised Rs 12,500 crore via its qualified institutional placement, including a greenshoe option of up to Rs 2,500 crore, two bankers aware of the development told BloombergQuint.

The Axis Bank QIP is now closed for subscription. It witnessed strong demand from both domestic and foreign investors, one of the bankers quoted above said on the condition of anonymity.

Shares were issued at a base price of Rs 661.50 apiece, with an option to avail a maximum discount of up to 5 percent. A board meeting would now be held on Sept. 25 to approve the allotment of shares, the private lender said in an exchange filing on Thursday.

Funds raised via the Axis Bank QIP will aid the lender’s tier-I ratio by 2.2 percent, according to BloombergQuint calculations. Axis Bank’s tier-I capital adequacy ratio stood at 12.9 percent in the first quarter of financial year 2019-20. Its total capital adequacy was at 16.06 percent during the same period. This is expected to support the loan book growth for the bank along with its target to deliver a 18 percent return-on-equity.

The base price for the Axis Bank QIP is at a premium to the book value of Rs 272 per share, according to its exchange filing.

In July, Axis Bank had said its board approved raising up to Rs 18,000 crore through the issue of equity shares, depository receipts or convertible securities.